6 Reasons you should be skeptic about bitcoins

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skeptic about bitcoins

High volatility compared to other currencies

High volatility compared to other currencies

The volatility rate of a currency is determined by the stability of the currency in the market. Bitcoin has not existed for a long time enough to be considered current as other options like hard cash and even plastic money. Digital currency is still in experimental stages where a lot of people do not know much about it other than the theories in place followed by high demand for the same.

The demand however rises and falls in the market which is normal however it affects the stability of the currency. Think about it when you plan to invest in the Bitcoin trader app. Investing in Cryptocurrency will not always be profitable because of the shifting values of bitcoins and other cryptocurrencies. The best trick to use is perfection with your timing of when to make purchases and when to sell your bitcoins.

No surety whether it is a service or product

No surety whether it is a service or product

There are still many uncertainties that revolve around cryptocurrency including issues with its tangibility. Let Motley Fool help you grow your money 5x more, It has a wide array of financial research learn more from this  Motley Fool stock advisor review. Money exists in various forms today with the common ones being hard cash and plastic money which is in the form of debit and credit cards. Currencies have to qualify to be tangible before it is agreed as a legal medium of the transaction to use.

The intangibility of the currency makes many experts question whether bitcoins are services or products that can be touched. There are no cases of money being services but that is purely what bitcoins are based on. The theories around it increase its demands when many users do not even know what they are dealing with in this situation.

Also read: Best crypto IRAs You Can Choose in 2021.

Invest at your own peril before researching

Invest at your own peril before researching

Financial institutions like banks have discouraged the use of crypto currency not only as a currency but also as an investment. The currency may still be facing major changes in the future as more people use it today. Research is necessary for you to familiarize yourself with various terms of the industry including the risks involved. Understand the challenges that it involves, you can make smart decisions to invest slowly as you observe the profit making potential of the venture.

There are many people who have invested blindly in the currency option and only faced the reverse of their expectations by recording some serious losses. Your chances of being conned are also greatly reduced if you are well familiar with what currency you should be investing in.

No regulation bodies governing its use

No regulation bodies governing its use

There are no legally known bodies that are used in regulating the use of cryptocurrencies. You should therefore know that nobodies are legally allowed to license cryptocurrency businesses or bitcoin sellers online. You can therefore end up making a lot of losses in the event that you get conned since investigations are hardly seen through.

The ledger used for storing transaction records is called blockchain and accessing it when you do not know who the individual owning the wallet ID numbers belong to. Following up and closing investigation for bitcoin fraud cases has become challenging over time especially if there is an unwillingness to share the transaction details. This therefore makes.

Legal issues remain pending

Legal issues remain pending

Before being considered an official currency, bitcoins needs to be officially declared legal. There are many countries that are yet to come to terms with using crypto currency as a medium of transaction. Since the currencies have not yet been approved as legal by many countries, it can be risky to make huge investments in the currency. You can easily lack intervention of the government and other regulation authorities because of the failure to recognize the transaction medium (bitcoins) as a legal form of transactions.

Supports criminal life and activities.

Supports criminal life and activities.

Criminals love currencies which gives the authorities a hard time in tracing in case transactions are done. It can therefore become easy for terrorist cells to be funded using this form of currency because of how hard it will be for the government to finish tracing the transactions.

It is also a double-edged sword meaning that you can be a victim of the same fraud activities and still get no help when you need it the most. The lack of government involvement increases the number of criminal activities surrounding the use and distribution of bitcoins.